Huntington National Bank 2007 Annual Report Download - page 88

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The following table summarizes the preliminary estimated fair value of the net assets acquired on July 1, 2007 related to the
acquisition of Sky Financial:
(in thousands) July 1, 2007
Assets
Cash and due from banks $ 341,566
Federal funds sold and securities purchased under resale agreements
(1)
1,023,284
Loans held for sale 167,296
Securities and other earning assets 853,633
Loans and leases 12,577,906
Goodwill and other intangible assets 2,871,498
Accrued income and other assets 603,947
Total assets 18,439,130
Liabilities
Deposits 12,850,717
Borrowings 1,888,290
Accrued expenses and other liabilities 173,359
Total liabilities 14,912,366
Purchase price $ 3,526,764
(1) The federal funds sold and securities purchased under resale agreements were with Huntington.
Huntington’s consolidated financial statements include the results of operations of Sky Financial after July 1, 2007, the date of
acquisition. The following unaudited summary information presents the consolidated results of operations of Huntington on a pro
forma basis, as if the Sky Financial acquisition had occurred at the beginning of each of the periods presented.
(in thousands, except per share amounts) 2007 2006
Net interest income $ 1,602,506 $ 1,583,047
Provision for credit losses (683,152) (102,045)
Net interest income after provision for credit losses 919,354 1,481,002
Non-interest income 748,221 779,939
Non-interest expense (1,633,509) (1,516,481)
Income before income taxes 34,066 744,460
Benefit (provision) for income taxes 49,651 (128,396)
Net income $ 83,717 $ 616,064
Net income per common share
Basic $ 0.23 $ 1.72
Diluted 0.23 1.70
Average common shares outstanding
Basic 365,696 357,393
Diluted 367,069 361,537
The pro forma results include amortization of fair value adjustments on loans, deposits, and debt, and amortization of newly
created intangible assets and post-merger acquisition related expenses. The pro forma results for 2007 also include certain non-
recurring items, including a $72.4 million loss on the sale of securities by Sky Financial in anticipation of the merger and
$11.3 million of additional personnel expenses for retention bonuses and the vesting of stock options. The pro forma number of
average common shares outstanding includes adjustments for shares issued for the acquisition and the impact of additional dilutive
securities. The pro forma results presented do not reflect cost savings or revenue enhancements anticipated from the acquisition,
and are not necessarily indicative of what actually would have occurred if the acquisition had been completed as of the beginning
of the periods presented, nor are they necessarily indicative of future consolidated results.
Effective October 2, 2007, Huntington acquired Archer-Meek-Weiler Agency, Inc., Columbus, Ohio (Archer-Meek-Weiler). Archer-
Meek-Weiler is a full-service agency that sells personal and commercial insurance as well as group benefits. Throughout the year,
Huntington acquired several small companies specializing in providing 3rd party products and services related to the banking
industry. These acquisitions, individually, and in the aggregate, are not material to Huntington’s consolidated financial statements.
86
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS HUNTINGTON BANCSHARES INCORPORATED